New EU Sanctions Against Crimea Exclude Contracts Signed Before Decemer 20

BRUSSELS, December 19 (Sputnik) – A new round of EU sanctions imposed against Crimea will not affect business contracts signed before December 20, when the sanctions are to officially go into effect, according to the Official Journal of the European Union published Friday.

“The prohibitions…shall be without prejudice to the execution of an obligation arising from a contract concluded before 20 December 2014, or ancillary contracts necessary for the execution of such a contract, provided that the competent authority has been informed at least five working days in advance,” the Official Journal statement reads.

On Thursday, EU leaders meeting in Brussels amended the regulation concerning Europe's restrictive measures in response to Crimea's reunification with Russia. New sanctions, which go into effect Saturday, ban all foreign investment in Crimea and Sevastopol, prohibit services related to the investment ban and to tourist activities, and outlaw Crimean port calls by European ships. Moreover, Europeans and EU-based companies are prohibited from buying real estate or entities in Crimea, as well as supplying the region with telecom, transport or energy-production technologies.

The amendment specifies a "ban on all foreign investments in Crimea or Sevastopol. That Decision also provides for a prohibition on services directly related to the investment ban, as well as services related to tourism activities, including in the maritime sector, and in the sectors of transport, telecommunications, energy and exploitation of oil, gas and minerals in Crimea or Sevastopol," the Official Journal of the European Union says.

The previous ban on the export of goods and technology in the transport, telecommunications and energy sectors as well as the exploitation of oil, gas and minerals has been broadened.

The amended regulation also prohibits Europeans and EU-based companies from buying real estate or entities in Crimea, acquiring new or extending existing ownership of entities in Crimea or Sevastopol, creating joint ventures, and providing technical assistance or engineering services relating to infrastructure in the region.

Moreover, EU ships providing cruise services have been prohibited from entering and calling at Crimean ports.

The new sanctions against Crimea will not affect business contracts signed before December 20.

"The prohibitions… shall be without prejudice to the execution of an obligation arising from a contract concluded before 20 December 2014, or ancillary contracts necessary for the execution of such a contract, provided that the competent authority has been informed at least five working days in advance," the Official Journal statement reads.

Crimean voters backed a reunification with Russia by an overwhelming 96 percent majority in a referendum on March 16. Russia's reunification with its former Republic of Crimea led to a current political standoff between Moscow and largely pro-Kiev Western countries that refuse to recognize the legitimacy of the vote.

The European Union adopted several rounds of sanctions against Russia over Moscow's alleged role in the Ukrainian crisis. The sanctions target the banking, energy and defense sectors, as well as certain individuals. Russia has repeatedly denied its involvement in Ukraine's internal affairs.